Retail and Business Banking – 2016 Financial Review

Personal banking

Total average loans and acceptances growth of 13% (excluding
FirstLine mortgages)

Total average deposits growth of 7%

Leading mortgage market share growth

Increased the number of Mobile Sales Advisors by 17% in the year

60% of our clients are now engaged with CIBC digitally, and growing

Product use count of new clients 12 months after joining up 50% since
2013

Average loans and
acceptances(2A)

($ billions)

Average deposits

($ billions)

Business banking

Total average loans and acceptances growth of 13%

Total average deposit growth of 10%

Leading market share growth in both business deposits and business loans

Average loans and
acceptances(1A)

($ billions)

Average deposits(1A)

($ billions)

(1A)

Certain prior period information has been reclassified to conform to the presentation adopted in the current year. See “External reporting changes” for additional details.

(2B)

Total average loans and acceptances includes FirstLine mortgages.

Results(1B)

Table of Results for Retail and Business Banking for the last three years from 2016 to 2014.

$ millions, for the year ended October 31

2016

2015(2B)

2014(2B)

Revenue

Personal banking

$

7,066

$

6,693

$

6,305

Business banking

1,726

1,623

1,531

Other

63

90

387

Total revenue

8,855

8,406

8,223

Provision for credit losses

765

670

731

Non-interest expenses

4,472

4,309

4,219

Income before income taxes

3,618

3,427

3,273

Income taxes

929

897

814

Net income

$

2,689

$

2,530

$

2,459

Net income attributable to:

Equity shareholders (a)

$

2,689

$

2,530

$

2,459

Efficiency ratio

50.5

%

51.3

%

51.3

%

Return on equity(3B)

51.0

%

55.6

%

62.6

%

Charge for economic capital(3B) (b)

$

(513)

$

(547)

$

(485)

Economic profit(3B) (a+b)

$

2,176

$

1,983

$

1,974

Average assets ($ billions)

$

265.8

$

243.8

$

230.5

Average loans and acceptances ($ billions)

$

266.0

$

244.6

$

231.3

Average deposits ($ billions)

$

186.0

$

172.2

$

162.5

Full-time equivalent employees

20,280

21,532

21,862

(1B)

For additional segmented information, see Note 28 to the consolidated financial statements.

(2B)

Certain information has been reclassified to conform to the presentation adopted in the current year. See “External reporting changes” for additional details.

(3B)

For additional information, see the “Non-GAAP measures” section.

Financial overview

Net income was up $159 million or 6% from 2015, primarily due to higher revenue, partially offset by higher non-interest expenses, and a higher provision for credit losses.

Revenue

Revenue was up $449 million or 5% from 2015.

Personal banking revenue was up $373 million or 6%, primarily due to volume growth, favourable pricing, higher fees, and an additional day in the current year. The prior year included a gain arising from accounting adjustments on credit card-related balance sheet amounts, shown as an item of note.

Business banking revenue was up $103 million or 6%, primarily due to volume growth, and higher fees, partially offset by narrower spreads.

Other revenue was down $27 million or 30%, mainly due to lower revenue from our exited FirstLine mortgage broker business.

Provision for credit losses

Provision for credit losses was up $95 million or 14% from 2015, primarily due to higher write-offs and bankruptcies in the card and personal lending portfolios, and higher losses in the business banking portfolio.

Non-interest expenses

Non-interest expenses were up $163 million or 4% from 2015, primarily due to higher spending on strategic initiatives, including innovation to further our retail transformation.

Income taxes

Income taxes were up $32 million or 4% from 2015, primarily due to higher income, partially offset by an income tax recovery from the settlement of transfer pricing-related matters, shown as an item of note.

Average assets

Average assets were up $22 billion or 9% from 2015 due to growth across all products.